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Praise for Lean IT “A great read on how to apply Lean principles to IT. These tools really work to improve IT’s performance and credibility.” — Niel Nickolaisen, CIO Headwaters, Inc.; co-author of Stand Back and Deliver: Accelerating Business Agility “A groundbreaking synthesis, examining IT operations, project management, software development, and governance through a Lean lens. Taut, subtly reasoned, and laced with the kind of brilliant insights that only come from practicing masters. Required reading for IT executives, archi- tects, and project managers.” — Charles Betz, author of Architecture and Patterns for IT Service Management, Resource Planning, and Governance, and practicing Fortune 20 enterprise architect “A superb primer for anyone interested in learning about Lean. Their work will help business leaders understand the arcane machinations of IT while giving IT professionals a common language to talk to the business.” David Almond, Administrator, Office of Transformation for the Department of Administrative Services; former CIO, Oregon Department of Revenue “Do most IT organizations waste effort? They do. Can this book transform your thinking and jumpstart your efforts to eliminate waste and optimize the business value of IT? You bet!” Kurt Milne, Executive Director, IT Process Institute “Finally! A practical Lean transformation blueprint that includes information systems and the IT organization, while addressing the essential element of human engagement across the enterprise. You can easily digest their lessons and learn how to adapt and apply to your specific organization. This is the key to business alignment the IT industry has been searching for.” Andrew Rome, Talent & Organizational Performance executive of an 80,000-person global IT Management firm “A deft application of Lean concepts and techniques to a central challenge we all face: how to increase effectiveness of investments in IT people and systems and the value they bring to enterprise processes. Current and aspiring business and IT leaders and managers at all levels of the organization will benefit from their in-depth knowledge and broad perspective.” John Pierce, Vice President, Information Systems, Tripwire, Inc. “Lean IT is an idea whose time has come, especially now that applications like electronic medical records may soon revolutionize health care. Bell and Orzen blend creativity and practicality as they show how to improve both information quality and ease—all the while acknowledging that more is not always better.” Naida Grunden, Author, The Pittsburgh Way to Efficient Healthcare: Improving Patient Care Using Toyota Based Methods “This book is long overdue. The IT world needs tools and concepts to be structured in their language and approach so they can join the productivity push that manufacturing has already experienced. “ Bill Baker, co-author, Winning the Knowledge Transfer Race “This book is a must read for not only IT professionals, but business executives as it aligns information and information systems throughout the enterprise and supply chain, which improves organizational performance and agility.” Beth Cudney, Ph.D., Missouri University of Science and Technology; author of Using Hoshin Kanri to Improve the Value Stream “This work integrates the Lean work over the past century and brings it to focus on the IT organization to eradicate the very drivers of IT wastes, replacing them with a value driven approach based on Lean principles. This comprehensive book should be required reading for all levels in the IT organization.” Mark Swets and Tim Schipper, Lean Coaches, Steelcase; co-authors of Innovative Lean Development “From software development to help desk management, business leaders, IT professionals, and improvement teams finally have clear and concise answers to the question, ‘Yes, but, how does Lean apply to IT?’ Supported by compelling case studies, this outstanding book goes far beyond theory. Karen Martin, co-author of The Kaizen Event Planner: Achieving Rapid Improvement in Office, Service, and Technical Environments “Lean IT takes the game to a new level, particularly in the field of Lean Healthcare, where effective information systems are vital. I suppose I will have to buy multiple copies of this book -- So many IT managers in need of Lean education; so little time.” Tom Jackson, author of Hoshin Kanri for the Lean Enterprise: Developing Competitive Capabilities and Managing Profit, winner of the 2007 Shingo Research Prize “Read it! Learn it! Do it! These pages are meant to be dog-eared, high-lighted, and coffee-stained. Within these pages are the keys to unlocking the value of information and information systems.” Dennis E. Wells, Lean Evangelist, Oregon Department of Human Services “The authors clearly articulate and demystify the overwhelming challenge of enabling IT processes and organizations to embrace rapid change demanded by Lean transformation. Lean IT represents an important body of work Lean practitioners desperately need to break through the plateau of unending point improvements into sustainable system wide improvements impacting the bottom line.” Rajesh Solanki, Corporate Director for Continuous Improvement, RTI International Metals, Inc “Nearly every week, IT leaders ask me to help clarify their roles in their organizations’ process improvement efforts. This book not only answers how and why, it also gives great examples showing that it can be done in your organization too!” Steve Hoeft, Lean Six Sigma Director, Altarum Institute; Lead Instructor, Univ. of Michigan Lean Manufacturing, Lean Product Design and Lean Healthcare Certification courses; and author of Stories From My Sensei. “The gap from the implementation of Lean in production processes to office practices now has a bridge! Orzen and Bell are visionary showing the value of a fully integrated lean enterprise.” Elizabeth M. King, Executive Director Organizational Effectiveness, ESCO Corporation; Association for Manufacturing Excellence, Director Lean IT Enabling and Sustaining Your Lean Transformation Steven C. Bell • Michael A. Orzen Productivity Press Taylor & Francis Group 270 Madison Avenue New York, NY 10016 © 2011 by Steven C. Bell and Michael A. Orzen Productivity Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Printed in the United States of America on acid-free paper 10 9 8 7 6 5 4 3 2 1 International Standard Book Number-13: 978-1-4398-1757-5 (Ebook-PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, trans- mitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, please access www.copyright. com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and registration for a variety of users. For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the Productivity Press Web site at http://www.productivitypress.com This book is dedicated to Morton and Rickie Orzen, and Bob and Betty Bell, our incredible parents who molded us with their unconditional love. We also dedicate the concepts and practices within this book to the count- less dedicated community volunteers, and aid workers with nonprofit and nongovernmental organizations around the world. We believe that Lean IT not only offers benefits to the industrialized countries, but to the billions of individuals in this world living at the bottom of the pyramid, who must do more with much less. We hope that Lean IT can help these compassionate individuals to harness the power and breadth of low-cost information tech- nologies to raise the standard and quality of living for all. Introduction , Foundation: What Is Lean IT and Why Is It Important? 1. Why Does Lean IT Matter? 2. Foundations of Lean 3. e Lean IT and Business Partnership ,, Integration: Aligning ,,, Performance: IT Lean IT and the Business Operational Excellence 4. Lean IT and Business 7. Lean IT Operations: Process Improvement ITIL and Cloud Computing 5. Lean IT Lessons Learned 8. Lean Software from Lean Manufacturing: Development Flow and Pull 6. Lean Management 9. Applying Lean to Systems Project Management ,9 Leadership Roadmap 10. Leading the Lean IT Transformation

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